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Simple English definitions for legal terms
Employee's Withholding Allowance Certificate
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A quick definition of Employee's Withholding Allowance Certificate:
Employee's Withholding Allowance Certificate: This is a form that an employee fills out to tell their employer how much money to withhold from their paycheck for taxes. It's also called a W-4 form.
A more thorough explanation:
An Employee's Withholding Allowance Certificate is a form that an employee fills out to let their employer know how much federal income tax to withhold from their paycheck. This form is also known as a W-4 form.
For example, if an employee is married and has two children, they may claim four allowances on their W-4 form. This means that their employer will withhold less money from their paycheck for federal income tax because they have more dependents.
Another example is if an employee starts a new job, they will need to fill out a new W-4 form for their new employer. This form will help their employer determine how much federal income tax to withhold from their paycheck.
employee-stock-ownership plan | employer–employee relationship